SNOW HILL — The town of Snow Hill received a clean audit for fiscal year 2011-2012 for the third consecutive year from Jay Parris, CPA with Barrow, Parris & Davenport of Kinston.

“I’m pleased with it,” Town Administrator Dana Hill said. “Everything was right in line.”

The audit was submitted to the Local Government Commission in mid-October — on-time for the third consecutive year. The audits were late the previous six years.

The town’s assets exceeded its liabilities more than $8.18 million. Total net assets increased by $137,748.

The general fund totaled $832,653, with revenues $107,365 over expenditures. In 2008, the town was in the red $144,185. The undesignated portion totaled $655,524, compared with $613,068 the previous year.

“The general fund balance was in good shape,” said Jay A. Parris of Barrow, Parris & Davenport.

More than two years ago, the town didn’t know what its financial status was. The state became involved when the general fund dipped below 8 percent. After firing its finance officer, the board contracted with a certified public accountant to straighten a year’s worth of financial data — some of which was recorded incorrectly.

“They’ve really turned things around the last two or three years,” Parris said.

The undesignated fund balance was 61.46 percent. While it was a drop from the previous year’s 95.19 percent, it was well above the state’s recommended 24 percent.

The decrease was the result of hurricane cleanup expenses at about $100,000 and paving the downtown parking lot for about $85,000, Hill said.

“The percentage would have been higher,” he said, “if our expenses wouldn’t have been abnormally high.”

Assets totaled more than $10.34 million, while depreciation was nearly $4.86 million. Ideally, they should be equal to cover the costs of all repairs and upgrades.

The water and sewer fund saw an $84,347 profit, not figuring in for depreciation. Hill said the fund remains in the hole if depreciation figures are considered because of the town’s old lines.

“Our cash balance is in pretty good shape,” Hill said.

The town had two findings — a lack of separation of duties, common to small counties and towns, and a lack of a separate surety bond for the finance officer and tax collector positions.

The town had switched insurance companies prior to the preceding fiscal year, but the finding wasn’t discovered in the previous year’s audit.

Parris said it was an oversight the previous year. The two positions were insured under the overall insurance plan for liability, but they should have had bonds separate from the rest of the employees — as required by the state.

Hill said he took care of changing the insurance the same day the mistake was discovered.

The town maintained a triple-A bond rating for the 14th year in a row.

Page 2 of 2 - Property tax rate is .35 per $100 of value. Taxes levied were $327,034 out of the total property value of nearly $93.44 million — compared with nearly $92.79 million the previous year.

The tax collection rate, not including motor vehicles, is 97.63 percent and is slightly above the previous year’s rate.

Mayor Dennis Liles said he appreciates the board and administration members for their conscientious work in turning the town’s financial status around.

“Overall, we’re heading in the right direction,” Liles said, “and I think all our numbers are up.”

Margaret Fisher can be reached at 252-559-1082 or Margaret.Fisher@Kinston.com.